Federal Reserve officials wrapped up their two-day meeting and released their decision on interest rates last Wednesday. Futures markets priced in a 0.25% increase and the Fed did just that. After all, Chair Jerome Powell consistently delivers exactly what the market expects.
A half-hour after the interest rate decision is announced, Powell takes the stage for a press conference. And unlike the interest rate move, there’s nothing predictable about this part of the day. Sometimes Powell makes comments that boost stocks. Other times, his words send stocks lower. Today, he’s speaking as stocks face technical headwinds.
As a technical analyst, I focus on price action. I, along with my colleagues, use chart patterns and indicators to forecast price moves.
Right now, there are at least four reasons to expect a market decline after Powell delivers his unpredictable message…
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